19280413_minutes.pdf

309

Meeting of the Executive Committee of the Federal Reserve Board was

hell* in the office of the Federal Reserve Board on Friday, April 13, 1928

at 11:00 a.m.

PRESENT: Vice Governor Platt

Mr. Hamlin

Mr. MillerMr. James

Noell, Asst. Secretary

Mr. McClelland, Asst. Secretary

Telegram dated April 11th from the Chairman of the Federal Reserve

Ballk c)f Boston, and telegram dated April 12th from the Chairman of the

'"Lerlil deserve Bankof Richmond, both advising that their boards of di-

at meetings on the dates stated made no changes in the banks' ex-

schedules of rates of discount and purchase.

Without objection, noted with approval.

Tel egram dated April 12th from the Deputy Governor of the Federal

.ve Bank of New York, advising of the establishment of the following

4cheriOf rates for purchases of bankers acceptances, effective April

13th:

1 to 30 days31 to 120 days121 to 180 daysRepurchase

ONO

.11

3 5/8=/;3 3/4/,47,3 3/4/

lithout objection, noted with approval.

Letter dated April 12th from the Secretary of the Federal Reserve

11844c0

f New York, advising that the board of directors at a meeting on

that a

%11/1t

4pril13th, of the buying rates quoted in the telegram from the Deputy

ate made no change in the bank's existing schedule of rates of dis-

alid purchase, other than to approve the establishment, effective

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

31_0

-2_

• Or of the oank above referred to.

Uithout objection, noted with approval.

Telegrams dated April 12th from the Chairmen of the Federal Reserve

1140:8Of Chicago and 3t. Louis, both advising of the establishment of the

tollOWing

schedule of rates for purchases of bankers acceptances, effective

414'11 13th:

1 to 30 days31 to 120 days121 to 180 days

3 5/8/03 3/4,;


Telegram dated April 13th from the Chairman of the Federal Reserve Bank

Of at

toond, advising of the establishment of the followinrr schedule of rates

111zollases of bankers acceptances, effective April 13th:

1 to 30 days 3 3/031 to 120 days 3 7/8i;121 to 180 days 470


Telegram dated April 12th from the Chairman of the Federal Reserve Bank

q 448as City, advising that the board of directors of the bank at its

on that date made no change in the existing schedule of rates of

clis"Illt and purchase, including the following schedule of rates for pur-

418es Of bankers acceptances:

1 to 30 days31 to 90 days91 to 120 days121 to 180 days

3 1/2;;3 V8p3

3/44/0


--,Orandum dated April 11th from the Secretary, advising that George

48' messenger under a temporary appointment, is leaving the Board's


11

11

4/13/28 -3-

311

services at close of business, April 20th.

Noted.

aePort of Committee on Salaries and 1".;xpenaitures an letter dated April

7t4 fram the Secretary of the Federal Reserve Bank of Cleveland, requesting

SI1Provel of a salary of .,3,000 per annum for Mr. Grover C. Hardesty, to be

ert/131c3rea as Chief of the Guard Force of the bank; the Board's Committee

recommenaing approval.

Approved.

Ileport of Committee on Salaries and Expenditures on letter dated

AlDril 9th from the Assistant Federal Reserve Agent at St. Louis, advising

tliat the Executive Committee of the Bank has voted, subject to the approval

Of t/le Board, to extend for a period of thirty days from April 16th, with

reY, leave of absence on account of illness previously granted Yr.

aobertZeller, an employee of the Money Department; the Board's Committee

rec"°rftending approval of the salary payment involved.

Approved.

aeport of Committee on Salaries and Expenditures on letter dated

441.4110th from the Governor of the Federal aeserve Bank of Minneapolis,

edvis

4DPro A,1r-- of the Board, to extend for a period of three months, ,tiith full

ileave of absence on account of illness previously granted Mr. Levi C.

ing that the Executive Committee of the bank has voted, subject to the

Dattiel

Drava).

acni an employee of the bank; the Board's Committee recommending ap-

01: the salary payment involved.

Approved.


3124/13/28

I)'-

Report of Committee on Salaries and Expenditures on letter dated April

6t14 from the Federal Reserve Agent at Kansas Gity, advising that the Execu-

ti:" Committee of the bank has voted, subject to the approval of the Board,

to °Italia for a period of one month from April 1st, with full pay, leave of

absalIce on account of illness previously granted Miss Marguerite Kihm, an

etPloYee of the Discount Department; the Board's Committee recommending ap-

Proval Of the salary payment involved.

Approved.

Report of the Executive Committee on letter dated April 6th from

the p0deral Reserve Agent at Cleveland, advising that the board of directors

'‘b bank has riven consideration to the question of the reserve require-

Of Cne Second National Bank of Allegheny, Pittsburgh, Pa. and is of

the n,--aniMous opinion that the reouirements of the bank should

not be altered.

*°111 the•ir present status, namely, 3",; of time deposits and of demand

cleP°sits; the Executive Committee recommending approval of the recommendation

Of the Cleveland directors.

Upon motion, it was formally voted that no change be

made in the present reserve requirements of the Second

National Bank of Allegheny.

The Secretary then presented letter dated April 12th from the Presi-

cleiit Or the Liberty State Bank and Trust Company, Mt. Carmel, Pa., accepting

the "11clitions of membership imposed upon it by the Board at the meeting

°I:14141.1 4th; the letter also statin, with reference to Condition 3, that

the ballk now owns 67 shares of stock in the National City Bank of New York

414 expects to exercise its right to purchase 12 additional shares to which

it13 entitled when new stock is issued.


313

_5-

Upon motion, it was voted to interpose no objection

to the purchase of the bank stock referred to.

Letter dated April 10th from the Managing Director of the Baltimore Branch

"the Federal Reserve Bank of Richmond, with reference to the proposed con-

etzlIction of a tunnel connecting the new branch bank building with the post-

e building diagonally across the street, which was held in abeyance be-

call" 0f the fact that there has been some agitation for the removal of the

Postoffice building to a new location; the Managing Director stating that it has

44beeadecided to erect a new postoffice building on the present site and

4cm—eating that the Board take up with the proper official of the Treasury

4Partment the matter of securing a permit for the construction of the pro-

tunnel

After discussion, the Secretary was directed to ad-

dress a letter to the Treasury Department requesting is-

suance of the necessary permit for the tunnel construction.

Letter dated April 9th from the Governor of the Federal deserve Bank

orcl4aas, advising that the board of directors at their last meeting voted

to.44zhorize the Dallas Dank to act as agent for the Federal Intermediate

0/.'ealt -ank of Berkeley, Cal. under the conditions outlined in Deputy Gov-

ernor (1-,illbertis telegram to the Board of March 29th and with the understanding

that°ract reasonable charge will be made for the services involve, the amount

thel„f to be determined by the rocecutive Committee of the bank; the Governor

-- reporting the opinion of his directors that the question of the charge

to 1,-0 Made should be placed upon the program for discussion at the forthcom-

illge°Ilforence of the Governors and suggesting that if the topic is submit-

tea 4

4t also include the desirability of a uniform charge by Federal Reserve

batIcafor handling securities for Federal Land Banks, Intermediate Credit


4/13/28-6-

314

13141'0, Joint Stock Land Banks, etc. as it is understood the Federal Reserve

411.1t Of St. Louis is making a charge for such safekeeping service, which is

Perfoxted gratuitously by the other Federal deserve banks.

After discussion, it was voted to approve the action ofthe directors of the Dallas bank in authorizing the institu-

tion to act as agent for the Federal Intermediate Credit BankOf Berkeley, with the understanding that some reasonable charge

Will be made for the services involved.It was also voted to advise the Governor of the Dallas bank

that there will be no objection to his suggesting discussion

at the forthcoming conference of Governors of the question of

a proper charge for the services involved in the above agencyarrangement, including, if he desires, the question of Federal

Reserve banks charging for safekeeping services rendered the

Pederal Land banks, Intermediate Credit banks, Joint Stock Land

banks, etc.

Letter dated April 10th from the Federal Reserve Agent at Chicago, trans-

kittirig copy ofa memorandum from the bank's Counsel with reference to the

i es of

the 80ard may

the Iroquois Trust Company, Chica?:o, Ill, and suggesting that

wish to report the institution's methods of advertising and

eellitg securities to the Attorney General of the United States as a possible

llolation of the Act approved May 24, 1926.

:teferred to the Law Committee.

, Secretary then read to the Board the following letter dated April

th"Im the Chairman of the Federal aeserve Bank of Richmond:

reet"I have just advised you by telegraph that our Board of Di-

or ors, in meeting today, voted no change in existing schedule

libratss. Accompanying this action, and as a result of our de-

1r2ratione upon the questions of credit supply and rate, the fol-

-"lng motion was made and unanimously carried:

'To aid in protecting the credit supply and in

Preventing further inflation, which has occurred for

the second time within ten years, the Directors of this

bank believe it to be necessary that the investment se-

curities of the System be sold in the Open Larket, and they


315

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4/13/28-7-

"direct that the investment securities now carried by

this bank be sold in an orderly manner at the discretion

of the officers.

If inflation is not decisively checked, the Directors

of this bank believe that it will be necessary to raise

the discount rate."

After discussion, during which it was brought

out that the security holdings of the Richmond bank

outside of the open market investment account amount

to only „1,153,000, the above letter was noted, no

action being consiiered necessary.

Mr. Platt then submitted letter addressed to him by the Governor under

(tate °I April 12th, advising that unaer the authority granted by the Board

011April 4th he has enaged Mr. Newton D. Baker as special counsel to represent

the Board in the case brought against it on behalf of the orp;anizers of the

Proposed United States Foreign Financing Corporation, with a fee in advance

°I 1$2,500 for the trial of the case in the Supreme Court of the District of

e°111111bia and

giall'ed to be rendered by him in any and all appeals or error proceedings

14 "id case.

an aggrep:ate of .)5,000 for s-ich further service as may be re-

Upon motion, it was voted to approve the action of

the Governor in fixing a fee of y2,500 for 11r. Baker for

services in handling the above mentIoned case in the Supreme

Court of the District of Columbia, With provision for an

additional fee of ,A,000 in the event the case is tried

in a highur court or courts, it being understood that the

above fee is in addition to all necessary expense incurred

by 1.:r. Baker in connection with the case.

°I1"3 OF SaNDING

1-1Pri1 10th,11th,

4tecl, IJth,

April 10th,

COL2IN :

Recommending changes in stock at Federal Heserve banks

as set forth in the Auxiliary Minute Book of this date.

liecommendations approved.

Hecammending action on application for admission of a state

bank, subject to the conditions stated in the individual

report attached to the application, as set forth in the


4 13-5-

'jiNG Oa. (Cont'd)

:-.uxiliary Minute 300k of this date.ecommendation approved.

The meeting adjourned, at 12:00 o'clock noon.

Vice-Governor.

Assistant Secret


19280413_minutes.pdf

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